Beauty chain cites high staff turnover for hold-up in closing of accounts

Weight loss and spa treatment firm Mary Chia Holdings called for a trading halt yesterday, a day after it asked for more time to hold its annual general meeting for the financial year ended March 31.

The company cited high staff turnover which had led to a delay in the closing of its accounts.

Mary Chia said its accounts and those of its subsidiaries were closed at the end of May.

As a result, their external auditors have just commenced their audit and will need time to complete the audit fieldwork and review of the annual report for this year.

SGX on Wednesday allowed the company to hold its AGM on Sept 15 instead of July 30, subject to certain conditions.

These include Mary Chia disclosing reasons for the extension and the conditions imposed. It must also get approval for the extension from the Accounting and Corporate Regulatory Authority.

The company confirmed that the extension does not contravene any laws and regulations governing the firm and its articles of association.

Mary Chia posted a 33 per cent drop in revenue to $9 million for the full year ended March 31, due mainly to the closure of three outlets in Singapore and one in Malaysia, and a shortage of manpower due to the suspension on hiring of foreign workers imposed by the authorities. The company's net losses widened to $5.67 million for the full year from losses of $3.84 million in the previous year.

In February this year, Ms Ho Yow Ping, 45, the chief executive of Mary Chia, was fined $2,600 after pleading guilty to employing three foreign women without prior written approval of the licensing officer. Ms Ho is the daughter of the founder of the beauty company, Madam Mary Chia.

A version of this article appeared in the print edition of The Straits Times on July 14, 2017, with the headline 'Mary Chia halts trading, delays AGM'. Print Edition | Subscribe

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